Deprecation of US payroll tax updates

This article describes the deprecation of tax updates for US payroll.

As of the 10.0.40 release of Microsoft Dynamics 365 Finance, tax updates are retired for the US payroll feature. Customers can now choose among different third-party solutions that are available on AppSource and other integrations with Dynamics 365 Human Resources.

What was done?

The tax engine code was removed, and significant code modifications were made to accommodate this change. All the ste.taxengine classes that were directly used in the codebase were eliminated. Other parts of the code that referenced ste.taxengine were adjusted so that they return default values or null. Because of these changes, some payroll functionality that previously depended on the tax engine might not work as expected.

Summary of the functionality code changes

The following table provides a detailed overview of functionality that still works and functionality that is affected by the removal of the tax engine. The table doesn't cover all functionality. If any functionality in the Payroll module doesn't work as expected, a dependency on the now-removed tax engine might be the cause.

Area	Functionality	Status
Payroll setup	Pay cycles and pay periods	Working. Pay cycles and pay periods can be set up independently.
Payroll setup	Payroll calculation frequencies	Working. Pay cycle and pay cycle frequency can be set up.
Codes and taxes	Earning codes and earning groups	Working.
Codes and taxes	Taxes, tax regions, tax codes, and tax groups	Deprecated.
Payroll processing tasks – earning statement processing	Generate and release earning statements for workers	Working. Earning statements can be generated and released for a specific period.
Payroll processing tasks – pay statements	All pay statements, issued pay statements, and submitted pay statements	Deprecated.
Payroll processing tasks – pay statement processing	Generate, submit, and post payroll statements	Deprecated.
Tax processing	Tax transaction history, tax register report	Deprecated. All previous records still exist, but new reports can't be created.
Payroll positive pay	Positive pay configuration and positive payroll setup	Positive pay configuration and positive payroll setup don't work as expected.

Note

Pay statement generation doesn't work as it worked in earlier versions.

Additional information

• On the Human Resources shared parameters page, the Payroll tab has disabled tabs, and tax can't be updated.

• Previously generated pay statements and processed payroll still exist. However, new ones can't be processed or generated.

• Customers should integrate with third-party payroll providers by using the developed entities. For more information, see the following articles:

  • Payroll integration API introduction
  • Payroll entities